Dubai’s industrial and logistics market maintained strong momentum through Q2 2025, supported by constrained supply, sustained occupier demand from 3PL, e-commerce, and manufacturing sectors, and a marked shift toward modern grade A facilities.
DUBAI’S INDUSTRIAL AND WAREHOUSING RENTS CLIMB 14% YoY IN H1 2025
Dubai’s industrial and logistics market maintained strong momentum through Q2 2025, supported by constrained supply, sustained occupier demand from 3PL, e-commerce, and manufacturing sectors, and a marked shift toward modern grade A facilities.
Dubai Investments Park (DIP) and Dubai Industrial City led rental growth, recording sharp YoY increases of 30% and 29%, respectively. In contrast, JAFZA rents were largely stable, with Grade A stock unchanged and Grade B up just 4% YoY, reflecting a plateau in these mature, fully established submarkets.
NEW SUPPLY PIPELINE TO RESHAPE MARKET DYNAMICS
The sector is poised for a significant supply wave over the next 18 months, with institutional-grade logistics parks set to launch across key submarkets including DIP, Warsan, and National Industries Park (NIP).
Aldar Properties will deliver a 1.59 million sqft logistics park in NIP, featuring three modular buildings with flexible configurations. This project forms part of Aldar’s AED 1 billion ($272 million) commitment to expand its logistics real estate footprint across Abu Dhabi and Dubai.
Terralogix by Sweid & Sweid, adding 1.96 million sqft of high-spec warehousing, represents a strategic move into emerging corridors, catering to high-growth sectors such as FMCG, 3PL, and retail.
Meanwhile, Radius City Logistics in DIP continues to draw steady preleasing interest, particularly from occupiers seeking last-mile distribution hubs close to major residential communities.
